AMD Earnings Preview: Could AI chip revenue boost its stock price?

• Analysts project AMD's Q2 revenue at $5.72 billion, up 6.76% year-on-year, First quarter revenue was $5.5 billion

• Earnings per share (EPS) are expected to be $0.18, compared with $0.02 a year earlier, First quarter EPS was $0.07

Data center segment has become the company's biggest business unit. The products of this business include EPYC (CPU), INSTINCT MI300X (GPU), INSTINCT MI300A (APU), etc. The market is most concerned about revenue from AI GPU.

“We delivered strong first quarter results with our Data Center and Client segments each growing more than 80% year-over-year driven by the ramp of MI300 AI accelerator shipments and the adoption of our Ryzen and EPYC processors,” said AMD Chair and CEO Dr. Lisa Su.

• Data Center segment revenue of $2.3 billion was up 80% year-over-year

• Client segment revenue was $1.4 billion, up 85% year-over-year

• Gaming segment revenue was $922 million, down 48% year-over-year, Embedded segment revenue was $846 million, down 46% year-over-year

According to the first quarter financial report, AMD expects revenue to be approximately $5.7 billion, plus or minus $300 million. At the mid-point of the revenue range, this represents year-over-year growth of approximately 6% and sequential growth of approximately 4%. Non-GAAP gross margin is expected to be approximately 53%.

Bernstein analyst Stacy Rasgon noted that "valuations have moderated somewhat amid the sell-off in recent weeks," and said the company's "burgeoning AI development may not live up to expectations and is being offset to some extent by weakness in the core business." Overall, he stuck with his Market Perform rating and $140 price target.

Rosenblatt's Hans Mosesmann also weighed in on AMD's stock price on Friday. He expects AMD's AI accelerator products to reach more than $4 billion in full-year revenue, but said "it is important to note that this business is constrained by supply chain constraints." Mosesmann is more bullish on AMD's stock price, rating the stock a buy with a price target of $250.

As an investor, do you think AMD is still worth investing in given the current AI story? Drop your answer Feel free to share your views~

AMD's business in Malaysia dates back to 1973, when AMD chose Malaysia as its first manufacturing base in Asia. AMD's main manufacturing facilities in Malaysia are located in Penang and Kuala Lumpur. These facilities include testing, packaging and warehousing operations. In the first few decades, AMD's factories in Malaysia gradually expanded and became an important part of AMD's global supply chain.

The chairman of the Malaysian Semiconductor Industry Association (MSIA) said that by 2030, Malaysia's semiconductor exports will reach the target of 1.2 trillion Malaysian ringgit (about US$256.96 billion). In order to consolidate Malaysia's position as the world's sixth largest exporter, the current export value compound annual growth rate (CAGR) is about 7.6%.

In addition, if you can accept greater volatility, AMD also has leveraged ETFs to look at:

There are also many ETFs related to AMD in the U.S. stock market.

You can find your favorite ETF through: